Basically, if you invest everything you have in your business, as most newcomers do, you don'tusually need a corporation because you have nothing to protect. Your household possessions,personal belongings, generally your car, and even a portion of the equity in your home is protectedby the homestead provision of the Federal Bankruptcy Act, and cannot be taken away from you. As a sole proprietor or partner of a business you'll be paying taxes on your overall earnings, muchthe same as if you were holding down a salaried or hourly paid job. Whether you do or don't takeout money as a salary will have no bearing on the earnings of your business and tax return. The often advertised advantage of incorporating, that you can manipulate your salary in order tosave on tax dollars, is real because of corporation laws. However, the IRS frowns on this practice.When your business is successful and making a lot of money, definitely check with youraccountant on the advantages of incorporating. As a corporation, you'll be subject to a number of other drawbacks as well: generally higher statetaxes, stricter laws concerning the operation of your business, more elaborate accountingprocedures, and legal papers that are required just about every time you make a major move orsign almost any contract. Thus, your legal and accounting fees will be much higher as acorporation than will those required for a sole proprietorship type of business. As a sole proprietor or partnership, you'll find many areas require the registration of your businessname. The cost however, is minimal, ranging from $5 to $100. About the best way to find out whatlaws apply in your area, is to call your bank and ask if they need a fictitious name registration cardor certificate in order for you to open a business account. Selecting a name for your business is quite important to you and particularly relative to advertising.Your business name should describe the product or services you offer. Fancy names such as,Linda's Clipping Service will lose potential "walk-in and passing" customers to the beauty shopacross the street that calls itself, Patti's Beauty Salon or Jane's Hair Styling Shop. The advantage of using your full name in the title of your business, such as Johnny Jones' MeatLockers, has the advantage of making credit somewhat easier to come by - provided you pay yourbills on time - but it also includes the disadvantage of confining your services to a local or at most,a regional area. Should you buy, lease, or rent a space for your business? think twice before you make anydecision along these lines. Most businesses tend to grow quickly or they never get off the ground. There are a few exceptions, but only a very few, that tend to grow at a modified rate. So, buying a piece of property and setting up your business on or within that property, obligatesyou to ownership regardless of what happens to your business. Leases are almost always very strong contracts written by attorneys to the advantage of theproperty-owner. When you sign an agreement to pay someone for the use of their space over anylength of time, you're "nailed in" to paying for that space regardless of what happens to yourbusiness.